Sportsman’s Warehouse(SPWH) - 2026 Q1 - Quarterly Report

Financial Performance - Net sales for the thirteen weeks ended May 3, 2025, were $249.1 million, a slight increase from$244.2 million in the same period last year, representing a growth of 1.5%[24] - Gross profit for the same period was $75.6 million, compared to$73.8 million in the prior year, indicating a gross margin improvement[24] - The company reported a net loss of $21.3 million for the thirteen weeks ended May 3, 2025, compared to a net loss of$18.1 million for the same period in 2024, reflecting a deterioration in profitability[24] - The net loss for the thirteen weeks ended May 3, 2025, was $21,254 thousand, compared to a net loss of$18,066 thousand for the same period in 2024, representing an increase in loss of approximately 12.1%[30] - Total net sales for the thirteen weeks ended May 3, 2025, were $249,103, compared to$244,240 for the same period in 2024, representing a growth of approximately 1.5%[68] - Gross profit for the same period increased to $75,643 from$73,786, reflecting a gross margin improvement[68] - During the 13 weeks ended May 3, 2025, the Company recognized a net loss of $21,254, resulting in a basic and diluted loss per share of$0.56[97] Cash and Liquidity - Total current assets increased to $441.4 million as of May 3, 2025, up from$366.0 million as of February 1, 2025, showing a significant liquidity improvement[21] - The company’s cash and cash equivalents increased to $3.6 million from$2.8 million, enhancing its cash position[21] - Cash and cash equivalents at the end of the period were $3,560 thousand, up from$2,168 thousand at the end of the same period in 2024, reflecting an increase of approximately 64.0%[30] - Net cash used in operating activities was $60,234 thousand for the thirteen weeks ended May 3, 2025, compared to$34,650 thousand for the same period in 2024, indicating a significant increase of approximately 74.0%[30] - The company reported a net cash provided by financing activities of $64,766 thousand for the thirteen weeks ended May 3, 2025, compared to$36,965 thousand for the same period in 2024, an increase of approximately 75.2%[30] Expenses and Liabilities - Selling, general, and administrative expenses were $95.3 million for the thirteen weeks ended May 3, 2025, slightly higher than$94.4 million in the prior year, reflecting ongoing operational costs[24] - Total liabilities rose to $714.6 million as of May 3, 2025, compared to$616.4 million as of February 1, 2025, indicating increased financial leverage[21] - The company incurred $2,821 thousand in interest paid during the period, compared to$2,688 thousand in the same period of the previous year, reflecting an increase of approximately 4.9%[30] - Total lease expense for the thirteen weeks ended May 3, 2025, was $23,977, up from$23,398 in 2024[61] - The company’s operating lease liabilities increased significantly, with a change of $9,869 thousand for the period ended May 3, 2025, compared to$1,477 thousand in the same period of 2024[30] Market and Operational Strategy - The company plans to focus on financial discipline and expense reduction in response to adverse macroeconomic conditions, which may impact future performance[16] - The company is exploring new market opportunities and plans to open additional stores, although success in these initiatives is uncertain[16] - The company operated 146 stores across 32 states as of May 3, 2025, maintaining its retail presence while also managing an e-commerce platform[34] Legal Matters - A putative class action lawsuit was filed against the Company and its Board of Directors on January 22, 2024, in the Delaware Court of Chancery[112] - The lawsuit claims that certain provisions in the Company's advance notice bylaws are invalid and that the Board members breached their fiduciary duty of loyalty[112] - The plaintiff seeks declaratory, equitable, and injunctive relief, along with attorneys' fees and other costs on behalf of the putative class[112] - The Court stayed the action on March 27, 2025, pending the resolution of motions to dismiss in other cases challenging advance notice bylaws[112] Shareholder Information - The weighted average shares outstanding for basic and diluted shares were 38.1 million for the current period, compared to 37.6 million in the prior year, indicating a slight increase in share count[24] - The Company had $314 in outstanding deferred financing fees as of May 3, 2025[91] - As of May 3, 2025, the number of shares available for awards under the Amended 2019 Plan was 1,954[99] Tax and Financing - The effective tax rate for the Company during the 13 weeks ended May 3, 2025, was 5.9$25,000 as of May 3, 2025, with an interest rate of 10.42%[70][76] - The interest rate on the amounts outstanding under the Revolving Line of Credit was 5.98% as of May 3, 2025, compared to 5.74% on February 1, 2025[86] - The Revolving Line of Credit matures on May 27, 2027, and contains customary affirmative and negative covenants[89] - The Company has a borrowing base calculation for its Term Loan, with $18,000 available for borrowing as of May 3, 2025[76] - The Company held approximately$416,400 in collateralized eligible inventory and credit card receivables related to the Term Loan and the Revolving Line of Credit as of May 3, 2025[89]